Home Market Market Watch Seed Consultants Market Watch Weekly Comment with Gary Wilhelmi 12/21/2012

Seed Consultants Market Watch Weekly Comment with Gary Wilhelmi 12/21/2012


Irresponsible political fumbling by the congress and the White House has put us in fiscal jeopardy. A wide spread on taxation levels and intransigence on the part of the democrats regarding spending cuts, has pushed us to the brink, of not just short term solutions, but more importantly long term entitlement and debt ceiling questions not even being discussed. Good grief, we have a Charley Brown style leadership. Watch S&P support at 1400 and NASDAQ at 3000.
January soybeans were over $15 last Monday and close to $14 on Thursday. China did cancel 840,000 tons of soybean purchases, but it was more of computer speculative, year end wash out. The same applied to March corn which is left with support at $6.83 and March wheat at $7.75. Jan beans look to the November low at $13.80. Light volume short covering appeared Friday morning.
Fundamentally, Brazilian crops look good and Argentine plantings are a little behind schedule at 4 % in soybeans and 9 % in corn. Excessive rains have also harmed wheat condition. A big snow storm helped winter wheat on the dry plains and added water to the critically low Mississippi river. Holiday trade is always reduced, but this year we also have the computer crazies sending volatility to unrealistic extremes.
February cattle resistance is at a $133.97 close. A few cattle had traded by Friday morning at $126 in Kansas and Texas. Boxed beef just chopped around in a mixed choice-select pattern. The snow storm cut hog slaughter on Thursday, but was not so much of a factor in the feedlots. Pork demand is seasonally subdued as is beef. Friday’s cattle on feed report was targeted at 94 % total on feed and 91 % placements.